What's Going On With Tesla Shares Today?

Tesla, Inc. TSLA reportedly sold 94,139 China-made electric vehicles (EVs) in December, a 68.7% increase from a year earlier.

Deliveries of China-made Model 3 and Model Y vehicles jumped 14.2% from November, Reuters reported, citing data from China Passenger Car Association (CPCA) on Wednesday.

Taking into account sales from its China-made vehicles, Tesla reported a total of 947,742 units for the full year, constituting 52.4% of the global deliveries for the U.S. electric vehicle pioneer, the report read.

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The report added that Tesla's most extensive global facility in Shanghai can manufacture 1.1 million units of Model 3 and Model Y cars annually.

In addition to serving the Chinese market, the plant also caters to countries including New Zealand, Australia, and Europe, Reuters added.

Globally, Tesla achieved a milestone by delivering a record-breaking 484,507 cars in the fourth quarter, surpassing market expectations. However, despite this achievement, BYD Co., Ltd. BYDDF exceeded Tesla.

Also Read: China's BYD Offers 2B Yuan Incentives To Dealers Following Q4 Sales Victory Over Tesla: Report

In the world's largest auto market, China, Tesla is grappling with increasing competition as a fierce price war and a decline in electric vehicle (EV) demand have not deterred local entrants from entering the fray, the Reuters report read. 

Tesla initiated a price war in China at the beginning of the previous year, involving over 40 brands and impacting industry profitability significantly, it added.

Intensifying the competition in the EV sector, Chinese smartphone manufacturer Xiaomi Corp. XIACF revealed its inaugural EV last week with the ambition of securing a position among the world's top five automakers in the next 15 to 20 years.

Also See: Chinese Smartphone Giant Xiaomi Enters Electric Vehicle Market, Targets Tesla, Porsche With SU7

Tesla's ambitious agenda to enhance its EV capacity in Shanghai, its primary global production hub, is contingent upon securing regulatory approval from Chinese authorities, the report added.

Read Next: Tesla Vs. BYD: Musk Labels American EV Giant An 'AI/Robotics Company' After Chinese Rival Steals Global Sales Crown

Price Action: TSLA shares are trading lower by 1.36% to $245.04 premarket on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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